Singapore’s industrial production data for July released by Singapore Economic Development Board showed on Friday that industrial production slipped 3.6 percent y/y, missing expectations for a rise of 0.9 percent.
On a month-on-month seasonally adjusted basis, Singapore’s factory output fell 4.0 percent in July, more than the median forecast of a contraction of 1.1 percent. Data compared to a 3.0 percent y/y dip in the previous month. The faster pace of declines in July highlighted headwinds the manufacturing sector is facing from weak global demand.
Details of the report showed that output falls in pharmaceuticals as well as marine and offshore engineering offset a rise in electronics. Singapore's export slump deepened in July, with shipments tumbling 10.6 per cent, the most in four months, as sales to all but one of the country's top ten markets fell.
July's manufacturing report adds to recent dismal economic data that point to risk of economic contraction ahead.
"Given the tepid external demand conditions, we tip 3Q16 domestic manufacturing growth to contract by 1.7 percent yoy, reversing the short-lived +1.1 percent yoy growth blip seen in 2Q16," said OCBC Economist Kelvin Ang in a report.
